the banks tightening will only affect one section of the market....that is the 25% of loans to FHB's....
and the media have been spruiking that it is the FHB's that have been buying expensive inner city properties, above their means....
two articles this week, one said she was paying 80% of her wages to pay the loan, another stated 50% I do not believe the majority of FHB's are as silly as those two cases... when I have checked sales for different suburbs, the most sales have been at the lowest end of the market, ....which tells me thats where the majority of buyers were.... not the isolated cases by the lame stream news..
so the banks have reacted and are tightening loans to FHB's...fair enough it will not affect the upgraders, and investors....most of whom have substantial equity, way above the 20-30% deposits required....
my portfolio shows above 70% equity...on a conservative basis....so thats 30% or less debt..... will the new LVR affect me.....no or other people in a similar situation to me....no
oh, btw, in the meantime there are others out there, who are offering competition to the big 4, with an easing of restrictions.....the kids just have to shop around
